Global Business

Global Business

Introduction

Globalization means increased interconnectedness, the expansion and deepening of various social, economic and political, the growing interdependence of all societies together, promoted by increased financial flows, financial and communications.

Michael Porter's Five Forces Model

Rivalry among Competitors

It refers to companies that compete directly in the same industry, offering the same product type.

Threat of New Entrants

It refers to the potential entry of firms that sell the same product type.

Threat of Substitute

It refers to the potential entry of firms that sell substitute products or alternative to the industry.

Bargaining Power of Suppliers

It refers to the ability to negotiate with suppliers that have, for example, while there are fewer suppliers, the greater its bargaining power, as not having much input supply, they can easily increase their prices (Porter, 1985).

Bargaining Power of Consumers

It refers to the ability to negotiate with consumers who have or buyers, for example, while there are fewer buyers, the greater its bargaining power as not having so much demand for products, they can claim for lower prices.

Macro-Environment

Economic Environment

The economic environment is characterized primarily by the phenomenon of globalization of the economy that will open and the emergence of new markets and increased competition between firms with strong financial and managerial capacity. Thus, globalization is forcing Tobacco businesses to regroup. The Tobacco sector is no exception to this rule is seen in recent years the phenomenon of concentration of large groups (the case of travel agencies, tour operators and hotels) (Abbott, 2000).

Political Environment

This is marked mainly by the degree of state intervention in the Tobacco sector established programs and policy choices involved. Thus, the Tobacco sector is seen by the intervention of the state during the 60 to regulate and promote it. 



Legal Environment

The legal environment may be explained by all laws, regulations and product standards in the Tobacco sector. Indeed, Tobacco industry activity is guided by clear procedures that define the regulatory and tax advantages that companies can benefit in their activities. Thus, the legal environment is a factor to be considered by Tobacco enterprises in their current and future strategic directions. For example, tax benefits for regional development zones encourage companies to follow a strategy of localization (Aldin, 2004).

Socio-cultural Environment

The socio-cultural environment is all lifestyles, modes and levels of education in society. Thus, culture can be a determining factor in the strategies of Tobacco businesses tends to offer a product whose major component is the national culture.

The Technological Environment

Creativity and innovation have become key assets for Tobacco businesses; they appear as the best guarantor of the activity. Thus, the impact of ICTs (information technology) is due:

Development Trade B to C (Business to Consumers: business to consumer): Tobacco can be considered one of the main market of International trade. Thus, Tobacco businesses are taking advantage of new information technology to reduce intermediation costs and strengthen relationships with customers directly (Alameri, 2003).

Strong competition for travel agents and producers (airlines, hotels) online.

Multiplication relations B to B (Business to Business): business relationships customers / suppliers are increasingly through the Internet.

Corporate Social Responsibility

Corporate social responsibility is as economic, legal, ethical, and ...